Introduction

Many organisations try to build their capacity as a source of competitive advantage in terms of their resources and capabilities. In order to accomplish this, it is important to identify and evaluate the organisation’s strengths and weaknesses in all its functional areas in comparison to what competitors have.

This requires an accurate and detailed knowledge (information) and understanding (interpretation) of both the internal and external environments.
The interaction between the organisation and the environment results in reciprocal influences.

Leaders need to be informed about what is going on, both in the internal and external environment, in order to gain strategic competitive advantage. Building information capacity is therefore an important activity that leaders need to engage in.